Alexandria– The Egyptian markets are witnessing a noticeable transformation in the patterns of consumption of jewelry and golden artifacts, as the sharp rises in gold prices have prompted many consumers to search for less expensive alternatives, which led to the prosperity of the painted accessories market that simulates gold in its appearance, but at low prices compared to the original metal.
And this type of artifact, known as “Chinese gold”, has become a lifeline for many Egyptians, especially low -income people in popular areas, after spreading with various designs and distinct in various markets and shops, to form a cheaper alternative to the precious yellow metal.
Gold prices fly
The price of 24 gram of gold in Egypt jumped to more than 4,700 Egyptian pounds (93 dollars), while the price of a gram of 21 carat gold exceeded 4100 pounds (81 dollars), while the prices of Chinese gold “imitated” range between 100 and 2000 pounds (between 2 and 40 dollars) per piece, regardless of its weight.
On a tour of the goldsmiths and gold jewelry markets in Alexandria Governorate, specifically in the Mansheya area in the city center, many gold merchants spoke about a noticeable decrease in the purchase rates.
Ahmed Abdel Jalil, the owner of a gold shop in the region, told Al -Jazeera Net that the market suffers from unprecedented stagnation, adding: “Customers enter and ask about prices, but once they know the great increase, they retreat from buying and prefer to search for cheaper alternatives.”
For his part, Hajj Ibrahim Khalil, one of the owners of gold shops in central Alexandria, indicates that those who are about to marry have become the only category that is accepted to buy gold to present it as a bride network, while women from different classes resort to Chinese gold as an economic option, especially after the development of its industry to become more quality and beautiful and close to the original gold.
Chinese gold boomer
On the other hand, Chinese -colored artifacts and accessories are increasingly popular. Mahmoud Ibrahim, the owner of one of the largest Chinese gold stores in Alexandria, confirms that sales have increased by more than 40% during the recent period, with the increasing demand for them on occasions, holidays and seasons.
Ibrahim notes that customers are looking for the external shape without indifference to the material, which is provided by painted artifacts that are very similar to real gold.
Ibrahim adds that Chinese gold manufacturing workshops are currently dependent on advanced machines, which allows them to use the stainless material in manufacturing, which gives products longer and more attractive. It also shows that the exposure of these artifacts to water, perfumes or weather factors does not affect them significantly, as they maintain their shape for nearly two years.
As for the need Amina Al -Sayegh, who went through a new experience in trade with golden jewelry and Chinese gold together, she says: “I inherited from my husband a gold jewelry store, but with the sharp rise in prices, the market witnessed a remarkable stagnation that led to a decrease in the number of customers and dealers in gold, which led me to buy another store and trade in Chinese gold, which achieved a great income.”
Al -Sayegh adds: “In the recent period, the alternative trade is expanding significantly, as the market of Chinese artifacts and accessories overlooking its prosperity continues, as consumers search for options that meet their aesthetic and social needs without weighing their shoulders financially.”
“As a business owner in the two elements together, I cannot honestly answer the future of the yellow metal as a basic source of decoration and investment in Egyptian society. Will traditional gold keep its position, or will economic changes lead society to accept alternatives as a major option? For this reason, I surround any developments that the market may witness in the coming years.”
Economic conditions reshape social customs
For his part, Hani Gaid, head of the Gold Division of the Chamber of Commerce, believes that what is known as “Chinese gold” is not related to real gold, as it is not safe for public health, and it is nothing more than a jewelry that depends on form and imitation only.
And he confirms, in exclusive statements to “Al -Jazeera Net”, that real gold consumers do not usually resort to these accessories, noting that the real alternatives lie in laboratory or silver diamonds, as they provide options at reasonable prices but maintain a real value, unlike Chinese gold, which he described as “without value.”
Gaid added that the reluctance to buy gold is not only due to the search for cheap alternatives, but is related to the decrease in financial liquidity among citizens and their decline in purchasing power, explaining that many individuals preferred to invest their money in bank certificates with high benefits instead of pumping them into the precious metal market.
However, this proposition contradicts what some merchants, who emphasized that the high prices of gold jewelry pushed a large segment of consumers, especially young people, to search for appearance alternatives, which explains the popularity of Chinese gold in the Egyptian market, as it has become an economic solution to the requirements of marriage in some cases during the recent period.
Mohamed Ezzat, the owner of a gold manufacturing workshop, talks to “Al -Jazeera Net” about the challenges facing the industry, saying: “We were accustomed to selling heavyweight golden sets, but with high prices, we started designing lighter pieces, such as delicate rings and fine chains, so that the price was accessible to customers.”
Ezzat adds that some workshops began to manufacture gold with low shifts such as 14 and 16 carat, instead of 18 and 21, with the aim of providing cheaper options for consumers, which is a competitive step to adapt to the change in the purchase of gold in Egypt.
“We are trying to adapt to the new reality, but the truth is that Chinese gold has become a strong competitor to us, as many prefer it to its similar appearance to the real gold and its low price …”.
Consumers, in turn, express the reasons for this transformation, as Heba Abdel Hamid, a government employee in the fourth decade of her life, sees that resorting to Chinese artifacts has become a necessity imposed by economic conditions.
She says: “I cannot buy gold at prices exceeding 4 thousand pounds per gram, while I can buy a full doctrinal accessory set for less than a quarter of this amount, and the same purpose is performed on occasions,” she says.
As for Souad Mahmoud (a housewife), she believes that it goes beyond being an economic solution, noting that there is a psychological and social factor in wearing gold.
She says: “In our society, gold is a symbol of social status, so even if not real, the appearance of it gives a suggestion of luxury.”
On its use as a network, Souad explains that relying on gold alternatives on official occasions is still widely unacceptable.
“It may be acceptable for daily use as an elaborate tradition, but it cannot replace real gold on occasions such as engagement, as it has moral and economic value that cannot be compensated with painted artifacts.”
Reasons for the high price of gold
The high price of gold is due to several main factors, most notably:
- Global changes in the precious metal markets.
- Effects of inflation.
- The fluctuations of the Egyptian pound exchange rate, which enhances the demand as a way to hedge against currency fluctuations.
Dr. Alaa Hassab Allah, the economist and professor of marketing at the Arab Academy, explains in an interview with “Al -Jazeera Net”, that the price of gold in Egypt is linked to the principle of supply and demand, and is directly affected by the movement of the precious metal globally and geopolitical tensions, which were reflected on the local market, in addition to the high cost of import due to the fluctuation of the pound price against the dollar.
According to God adds that resorting to painted alternatives and Chinese gold has become a natural choice in light of the economic pressures faced by citizens, but it is still just a temporary solution, while real gold remains a safe haven for investment despite its high prices.
The economist indicates that Chinese gold was able to attract a large percentage of consumers thanks to its attractive shine and designs, especially after gold prices witnessed a double increase between 2022 and 2024, affected by the dollar fluctuations and the global inflation crisis.
On the other hand, the prices of Chinese artifacts and painted accessories increased only dozens of pounds, as a result of high import costs, but they are still a more option compared to traditional gold.
Socially, Dr. Nahla Ibrahim, a professor of sociology at Alexandria University, believes that economic changes impose a reshaping of the prevailing customs, including the acquisition of gold for the bride or as gifts in social events.
She adds: “Despite its high prices, gold continues to occupy a place rooted in Egyptian culture, and it is one of the customs that most families adhere to when decorated or the acquisition of precious metal. However, difficult economic conditions may compel society to reconsider the extent of insistence on its acquisition, especially on occasions such as marriage and engagement.”
But to what extent may this phenomenon become permanent? Ibrahim answers that the matter depends on the developments of the economy, explaining: “If gold prices continue to rise, Chinese gold or other alternatives may become acceptable on a broader scale, and we may witness a gradual shift in the culture of real gold acquisition, so that it is limited to the richest layers.”
